To whom is the initial franchise fee for a Crave franchise paid?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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| (1) Type of Expenditure | (2) Amount | (3) Method of Payment | (4) When Due | (5) To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee (1) | $45,000 | Lump Sum | When Franchise Agreement Signed | Us |
| 1 Month (2) | $5,000 to $15,000 | As arranged | As arranged | Landlord |
| Rent – | ||||
| Lease & Utility (3) Security Deposit | $4,000 to $15,000 | As arranged | As arranged | Landlord, Utility Companies |
| Design & Architect (4) Fees | $1,000 to $35,000 | As arranged | As arranged | Designer or Architect |
| Leasehold | $100,000 to $700,000 | As arranged | As arranged | Contractor |
| Improvements (5) | ||||
| dependent on site conditions | ||||
| Signage (6) | $3,000 to $30,000 | As arranged | As arranged | Suppliers |
| Equipment, | $70,000 to $160,000 | As arranged | As arranged | Suppliers |
| Furniture and | ||||
| Fixtures (7) | ||||
| Point-of-Sale & Computer (8) Equipment | $1,500 to $5,500 | As arranged | As arranged | Suppliers |
| Business Licenses & Permits (Not Including Beer/Wine (9) License) | $500 to $4,000 | As arranged | As arranged | Government Agencies |
| Professional Fees | $1,000 to $3,500 | As arran |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–26)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the initial franchise fee is paid directly to "Us", meaning Crave itself. For a standard Crave restaurant or express restaurant, this fee is $45,000. For a Crave food truck, the initial franchise fee is $30,000. This fee is paid in a lump sum when the Franchise Agreement is signed.
For franchisees pursuing a Multi-Unit Development Agreement, a development fee ranging from $60,000 to $85,000 is paid to Crave upon signing the agreement. This fee allows the franchisee to develop multiple Crave locations. The specific amount depends on the number and type of units (Express Restaurants, Restaurants, or Food Trucks) the franchisee commits to developing.
Additionally, franchisees establishing a Food Truck will pay a $2,500 grand opening marketing fee to Crave upon signing the truck lease. This fee is earmarked for a grand opening marketing campaign that Crave will conduct on the franchisee's behalf during the first 90 days of operation.
It is important to note that these fees are generally non-refundable. Prospective franchisees should carefully consider their financial situation and business plan before signing the Franchise Agreement and remitting these payments to Crave.